The European Union
Council has adopted new rules for instant payments using the euro to empower fintech companies in Europe and
challenge the dominance of US giants Visa and Mastercard.
According to a report by Reuters, these regulations aim to enhance the payment landscape by allowing customers to transfer
euro-denominated money within 10 seconds, even outside traditional business
hours and across EU member states.
By enabling instant euro payments , the EU aims to boost cross-border payments and bolster the competitiveness of
European payment companies against established players like Visa and
Mastercard. The new regulation marks a significant departure
from the existing payment system, where transactions using traditional cards
and deposits often take several business days.
One aspect of the EU‘s initiative is to enhance the
strategic autonomy of the European economic and financial sector. By reducing
reliance on third-country financial institutions and infrastructures, the EU
seeks to strengthen its position in the global payments market.
⏰ Money transfers in the EU will become faster and easier!
💶 New rules on #InstantPayments will increase the number of payment options available to consumers.
More: https://t.co/UnvUjGNJwT
— EU Council (@EUCouncil) February 26, 2024
Besides that, the move reflects efforts to level the
playing field and promote fair competition among payment service providers,
including fintech firms that leverage customer data to offer services.
The adoption of instant euro payment rules is
expected to promote the growth of European fintech companies, which have been
increasingly challenging traditional banking models.
According to the regulator, fintechs can offer consumers
and businesses convenient alternatives to traditional banking services with
faster and more efficient payment mechanisms.
Empowering European Fintech Firms
As instant payments gain traction, businesses and
consumers may explore new opportunities for financial products and services
tailored to their needs. Moreover, the interoperability of instant payment
systems across EU member states will pave the way for cross-border
commerce and collaboration, driving economic growth and prosperity.
Recently, the European Parliament approved regulations aimed at enhancing credit transfers across the EU. Finance Magnates reported that these rules promise to enhance security and efficiency for consumers and businesses.
The new regulations prioritize consumer safety by
mandating financial institutions and payment service providers to bolster fraud
detection and prevention measures. Instant credit transfers, requiring funds to
reach recipients within ten seconds, mark a significant leap in transactional
efficiency.
Payment service providers must inform payers about the availability of funds in real-time, empowering consumers with immediate knowledge
and control over their transactions. To combat fraudulent activities, payment service
providers must offer prompt identity verification services without additional
charges.
The European Union
Council has adopted new rules for instant payments using the euro to empower fintech companies in Europe and
challenge the dominance of US giants Visa and Mastercard.
According to a report by Reuters, these regulations aim to enhance the payment landscape by allowing customers to transfer
euro-denominated money within 10 seconds, even outside traditional business
hours and across EU member states.
By enabling instant euro payments , the EU aims to boost cross-border payments and bolster the competitiveness of
European payment companies against established players like Visa and
Mastercard. The new regulation marks a significant departure
from the existing payment system, where transactions using traditional cards
and deposits often take several business days.
One aspect of the EU‘s initiative is to enhance the
strategic autonomy of the European economic and financial sector. By reducing
reliance on third-country financial institutions and infrastructures, the EU
seeks to strengthen its position in the global payments market.
⏰ Money transfers in the EU will become faster and easier!
💶 New rules on #InstantPayments will increase the number of payment options available to consumers.
More: https://t.co/UnvUjGNJwT
— EU Council (@EUCouncil) February 26, 2024
Besides that, the move reflects efforts to level the
playing field and promote fair competition among payment service providers,
including fintech firms that leverage customer data to offer services.
The adoption of instant euro payment rules is
expected to promote the growth of European fintech companies, which have been
increasingly challenging traditional banking models.
According to the regulator, fintechs can offer consumers
and businesses convenient alternatives to traditional banking services with
faster and more efficient payment mechanisms.
Empowering European Fintech Firms
As instant payments gain traction, businesses and
consumers may explore new opportunities for financial products and services
tailored to their needs. Moreover, the interoperability of instant payment
systems across EU member states will pave the way for cross-border
commerce and collaboration, driving economic growth and prosperity.
Recently, the European Parliament approved regulations aimed at enhancing credit transfers across the EU. Finance Magnates reported that these rules promise to enhance security and efficiency for consumers and businesses.
The new regulations prioritize consumer safety by
mandating financial institutions and payment service providers to bolster fraud
detection and prevention measures. Instant credit transfers, requiring funds to
reach recipients within ten seconds, mark a significant leap in transactional
efficiency.
Payment service providers must inform payers about the availability of funds in real-time, empowering consumers with immediate knowledge
and control over their transactions. To combat fraudulent activities, payment service
providers must offer prompt identity verification services without additional
charges.
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- Source: https://www.financemagnates.com//fintech/eu-approves-payments-regulations-to-challenge-visa-mastercard-dominance/
